New Jersey Announces New Grants for Small Businesses
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On April 19, 2021 the New Jersey Economic Development Authority (NJEDA) opened pre-registration to Phase Four of the Small Business Economic Assistance Grant Program.
04.26.21
The grant program offers $85 million in funding to New Jersey small businesses impacted by the COVID-19 pandemic. This is the first opportunity for New Jersey businesses to apply to the program since Phase Three closed in October 2020. It is essential that eligible New Jersey business pre-register before April 29, 2021 at 5:00 pm. The grant program is not first-come, first-served, but pre-registration is mandatory.
The program offers grants of up to $20,000 to small and medium-sized businesses and non-profits negatively impacted by the pandemic. Among other eligibility requirements, applicants must be registered to do business in New Jersey through the New Jersey Division of Taxation. While Phase Four seeks to generally relax eligibility requirements relative to previous rounds of funding, applicants must certify a “material financial need” for support as a result of the COVID-19 pandemic.
In addition to several online tools and calculators, the NJEDA offers a FAQ with detailed information on Phase Four grants. This document addresses details including, but not limited to, eligibility, required documentation and other questions about the application process.
Grant sizes are to be calculated based on the number of full-time equivalent employees (FTEs) in the applicant-business. Micro-businesses with five or fewer FTEs and sole proprietorships are eligible to receive up to $10,000. Businesses with six to 25 FTEs can receive up to $15,000, while businesses with 26 to 50 FTEs may receive up to $20,000.
In addition to the Small Business Economic Assistance Grant Program, the NJEDA also facilitates an emergency loan program for small businesses negatively impacted by COVID-19. Phase Two of the emergency loan program was announced and subsequently deferred in February 2021. The Loan Program may re-open once the federal Payment Protection Program expires, but a date has not been officially announced. New Jersey offers a separate program to provide PPE at discounts of up to 70% for small businesses. That program is set to expire May 28, 2021.
Updated guidance on workplace health and safety standards is available through the New Jersey COVID-19 Business Information portal.
The Coronavirus Task Force at Klehr Harrison stands ready to assist you in your business and legal needs. We will continue to provide additional information and guidance as the COVID-19 situation develops.